Stock Market Professional
A Complete Package for Stock Market Professional Course Contents Market Basic - Capital Market - Currency - Commodity Technical Analysis Fundamental Analysis Derivative Analysis (F&O - Option Strategies) Benefits to Join This Course Trading Support during and after the course Free Trading & Demat A/C Online Live Class Free Demo Class Installment Facility Available Course Duration - Two month Timing - one and half hour daily Monday to Friday Mode of class - Online Live on Zoom Course Fees - 20000/- after Discount 10000/- |
Detail Syllabus - Technical Analysis
CHAPTER 1 ............................................................................................................ 9
INTRODUCTION TO TECHNICAL ANALYSIS ............................................................ 9
1.1 What is technical analysis? ...............................................................................9
1.1.1 Price discounts everything ....................................................................9
1.1.2 Price movements are not totally random ..............................................10
1.1.3 Technical Analysis: the basic assumption ..............................................11
1.1.4 Strengths and weakness of technical analysis .......................................12
1.1.4.1 Importance of technical analysis ............................................12
1.1.4.2 Weaknesses of technical analysis ...........................................13
CHAPTER 2 .......................................................................................................... 16
CANDLE CHARTS .................................................................................................. 16
2.1 The charts ...................................................................................................16
2.2 Candlestick analysis ......................................................................................20
2.2.1 One candle pattern ............................................................................21
2.2.1.1 Hammer ............................................................................21
2.2.1.2 Hanging man ......................................................................22
2.2.1.3 Shooting star and inverted hammer .......................................23
2.2.2 Two candle pattern ............................................................................26
2.2.2.1 Bullish engulfi ng ..................................................................26
2.2.2.2 Bearish engulfi ng ................................................................28
2.2.2.3 Piercing .............................................................................29
2.2.2.4 Bearish harami....................................................................31
2.2.2.5 Bullish harami .....................................................................33
2.2.3 Three candle pattern .........................................................................35
2.2.3.1 Evening star .......................................................................35
2.2.3.2 Morning star .......................................................................38
2.2.3.3 Doji ...................................................................................40
CHAPTER 3 .......................................................................................................... 46
PATTERN STUDY .................................................................................................. 46
3.1 What are support and resistance lines? ............................................................46
3.1.1 Support ........................................................................................46
3.1.2 Resistance .......................................................................................48
3.1.3 Why do support and resistance lines occurs? .........................................49
3.1.4 Support and resistance zone ...............................................................49
3.1.5 Change of support to resistance and vice versa .....................................51
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3.1.6 Why are support and resistance lines important? ...................................52
3.2 Head and shoulders ......................................................................................52
3.2.1 Head and shoulders top reversal .........................................................53
3.2.2 Inverted head and shoulders ..............................................................57
3.2.3 Head and shoulders bottom ................................................................58
3.3 Double top and double bottom .......................................................................62
3.3.1 Double top .......................................................................................63
3.3.2 Double bottom ..................................................................................66
3.3.3 Rounded top and bottom ....................................................................69
3.4 Gap theory ..................................................................................................70
3.4.1 Common gaps ..................................................................................71
3.4.2 Breakaway gaps................................................................................71
3.4.3 Runaway/continuation gap .................................................................72
3.4.4 Exhaustion gap .................................................................................73
3.4.5 Island cluster ...................................................................................74
CHAPTER 4 ........................................................................................................ 79
MAJOR INDICATORS & OSCILLATORS ................................................................. 79
4.1 What does a technical indicator offer? .............................................................79
4.1.1 Why use indicator? ............................................................................79
4.1.2 Tips for using indicators .....................................................................79
4.1.3 Types of indicators ............................................................................80
4.1.4 Simple moving average ......................................................................81
4.1.5 Exponential moving average ...............................................................81
4.1.6 Which is better? ................................................................................83
4.2 Trend following indicator ................................................................................84
4.2.1 When to use? ...................................................................................84
4.2.2 Moving average settings ....................................................................84
4.2.3 Uses of moving average .....................................................................85
4.2.4 Signals - moving average price crossover .............................................87
4.2.5 Signals - multiple moving averages .....................................................88
4.3 Oscillators ...................................................................................................89
4.3.1 Relative strength index ......................................................................89
4.3.1.1 What is momentum? ............................................................89
4.3.1.2 Applications of RSI ..............................................................90
4.3.1.3 Overbought and oversold .....................................................90
4.3.1.4 Divergence .........................................................................91
4.3.1.5 Stochastic ..........................................................................93
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4.3.1.6 William %R .......................................................................97
4.3.1.7 Real life problems in use of RSI .............................................99
4.3.1.8 Advanced concepts ..............................................................99
4.3.2 Moving average convergence/divergence(MACD) ................................. 102
4.3.2.1 What is the macd and how is it calculated ............................. 102
4.3.2.2 MACD benefi ts .................................................................. 103
4.3.2.3 uses of MACD ................................................................... 104
4.3.2.4 Money Flow Index ............................................................. 107
4.3.2.5 Bollinger Bands ................................................................. 109
4.4 Using multiple indicators for trading signals .................................................... 110
4.4.1 Price sensitive techniques................................................................. 110
4.4.2 Volume sensitive techniques ............................................................. 111
4.4.3 Composite methods ......................................................................... 111
4.4.4 How to use tool kit of trading techniques ............................................ 111
4.4.5 Trading market tool kit applications ................................................... 112
4.4.6 Bull market tool kit application .......................................................... 112
4.4.7 Bear market tool kit application......................................................... 112
4.4.8 Trading market changing to bull market tool kit application ................... 113
4.4.9 Trading market changing to bear market tool kit application .................. 113
4.4.10 Bull market changing to trading market tool kit application ................... 114
4.4.11 Bear market changing to trading market tool kit application .................. 114
Chapter 5 .......................................................................................................... 120
Trading Strategies ............................................................................................. 120
5.1 day trading ................................................................................................ 120
5.1.1 advantages of day trading ................................................................ 120
5.1.2 risks associated with risk trading ....................................................... 121
5.2 strategies .................................................................................................. 123
5.2.1 strategies for day trading ................................................................. 123
5.2.2 momentum trading strategies ........................................................... 123
Chapter 6 .......................................................................................................... 127
Dow Theory and Elliott Wave Theory ................................................................. 127
6.1 Introduction ............................................................................................... 127
6.2 Principles of Dow Theory ............................................................................. 127
6.3 Signifi cance of Dow Theory .......................................................................... 133
6.4 Problems with Dow Theory ........................................................................... 133
6.5 Elliot Wave ................................................................................................ 133
6.5.1 Introduction ................................................................................... 133
6.5.2 Fundamental Concept ...................................................................... 133
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6.5.3 After Elliott ..................................................................................... 149
Chapter 7 ......................................................................................................... 159
Trading psychology and risk management ........................................................ 159
7.1 Introduction ............................................................................................... 159
7.2 Risk Management ....................................................................................... 160
7.2.1 Components of risk management ...................................................... 161
7.2.1.1 Stop loss .......................................................................... 161
7.2.1.2 Analyze reward risk ratio .................................................... 161
7.2.1.3 Trail stop loss.................................................................... 161
7.2.1.4 Booking Profi t ................................................................... 161
7.2.1.5 uses of stop loss ............................................................... 161
7.2.1.6 qualities of successful traders ............................................. 161
7.2.1.7 golden rules of traders ....................................................... 162
7.2.1.8 do’s and don’ts in trading ................................................... 162
7.3 rules to stop losing money ........................................................................... 163
7.4 choosing the right market to trade ................................................................ 167
7.4.1 importance of discipline in trading ..................................................... 1
Detail Syllabus - Fundamental Analysis
CHAPTER 1 : FUNDAMENTAL ANALYSIS: AN INTRODUCTION .................................4
1.1 What is fundamental analysis? ......................................................................... 4
1.2 Why is fundamental analysis relevant for investing? ............................................ 6
1.2.1 Efficient Market Hypothesis (EMH) ....................................................... 6
1.2.2 Arguments against EMH ..................................................................... 7
1.2.3 So, does fundamental analysis work? ................................................... 9
1.3 Steps in Fundamental Analysis ......................................................................... 9
CHAPTER 2 : BRUSHING UP THE BASICS ..............................................................10
2.1 Concept of “Time value of Money” ................................................................... 10
2.2 Interest Rates and Discount Factors ................................................................ 11
2.2.1 Opportunity Cost ............................................................................. 11
2.2.2 Risk-free Rate ................................................................................. 12
2.2.3 Equity Risk Premium ........................................................................ 12
2.2.4 The Beta ....................................................................................... 13
2.2.5 Risk Adjusted Return (Sharpe Ratio) .................................................. 14
CHAPTER 3 : UNDERSTANDING FINANCIAL STATEMENTS ……………………....…….. 16
3.1 Where can one find financial statements? ........................................................ 16
3.1.1 The Director’s Report ....................................................................... 19
3.1.2 The Auditor’s Report ........................................................................ 19
3.1.3 Financial Statements........................................................................ 20
3.1.3.1 Balance Sheet .................................................................... 20
3.1.3.2 Income Statement ............................................................. 26
3.1.4 Schedules and Notes to the Accounts ................................................. 28
3.2 Cash Flow Statement .................................................................................... 30
3.3 Financial Statement Analysis and Forensic Accounting ....................................... 32
3.4 Comparative and Common-size Financial Statements ........................................ 32
3.5 Financial Ratios ....................................................................................... 32
3.6 Du-Pont Analysis ....................................................................................... 48
3.7 Cash Conversion Cycle .................................................................................. 52
3.8 The Satyam Case and Need for Forensic Accounting .......................................... 55
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CHAPTER 4 : VALUATION METHODOLOGIES .........................................................57
4.1 Top-Down Valuation (EIC Analysis) .................................................................. 57
4.1.1 Economy ....................................................................................... 57
4.1.2 Industry ....................................................................................... 60
4.1.3 Company ....................................................................................... 60
4.2 Discounted Cash Flow (DCF) Models ................................................................ 64
4.3 Dividend Discount Model (DDM) ...................................................................... 65
4.4 FCFF and FCFE based DCF ............................................................................. 70
4.5 Sum Of The parts (SOTP) .............................................................................. 75
4.6 Price / Earnings Ratio ................................................................................... 77
4.7 Price / Book Value Ratio ................................................................................ 78
4.8 Enterprise Value / EBITDA Ratio ..................................................................... 79
4.9 Price / Sales Ratio ....................................................................................... 79
4.10 Special cases of Valuation .............................................................................. 79
4.10.1 IPOs ....................................................................................... 79
4.10.2 Financial Services firms .................................................................... 80
4.10.3 Net interest margin (NIM): ............................................................... 83
4.10.4 Firms with negative cash flows .......................................................... 85
4.10.5 Acquisition Valuation ........................................................................ 85
4.10.6 Distressed Companies ...................................................................... 85
Detail Syllabus - Derivative (Future & Option)
1. INTRODUCTION TO OPTIONS...........................................................................3
1.1. OPTION TERMINOLOGY .............................................................................. 3
1.2. OPTIONS PAYOFFS..................................................................................... 4
1.2.1. Payoff profile of buyer of asset: Long asset.......................................... 4
1.2.2. Payoff profile for seller of asset: Short asset........................................ 5
1.2.3. Payoff profile for buyer of call options: Long call................................... 6
1.2.4. Payoff profile for writer (seller) of call options: Short call....................... 6
1.2.5. Payoff profile for buyer of put options: Long put................................... 7
1.2.6. Payoff profile for writer (seller) of put options: Short put....................... 8
2. OPTIONS STRATEGIES .....................................................................................9
2.1. PROTECTIVE PUT....................................................................................... 9
2.2. COVERED CALL ....................................................................................... 11
2.3. LONG COMBO ......................................................................................... 13
2.4. PROTECTIVE CALL/SYNTHETIC LONG PUT................................................... 15
2.5. COVERED PUT......................................................................................... 16
2.6. LONG STRADDLE..................................................................................... 17
2.7. SHORT STRADDLE ................................................................................... 19
2.8. LONG STRANGLE..................................................................................... 21
2.9. SHORT STRANGLE ................................................................................... 22
2.10. COLLAR.................................................................................................. 24
2.11. BULL CALL SPREAD STRATEGY .................................................................. 27
2.12. BULL PUT SPREAD STRATEGY.................................................................... 29
2.13. BEAR CALL SPREAD STRATEGY.................................................................. 30
2.14. BEAR PUT SPREAD................................................................................... 32
2.15. LONG CALL BUTTERFLY ............................................................................ 33
2.16. SHORT CALL BUTTERFLY........................................................................... 35
2.17. LONG CALL CONDOR................................................................................ 37
2.18. SHORT CALL CONDOR.............................................................................. 40
3. VOLATILITY ...................................................................................................43
3.1. TYPES OF VOLATILITY .............................................................................. 43
3.2. CALCULATING THE HISTORICAL VOLATILITY ............................................... 44
3.3. IMPACT OF VOLATILITY ON OPTIONS ......................................................... 45